Reference no: EM133338122

Case Study: Closed innovations originate from resources within the organization. Such an innovation process is secretive, designed to prevent competitors from "getting free", and their intellectual property can be closely protected. Compared with such closed innovation, open innovation refers to the organization's intentional integration of knowledge exchange to accelerate the speed of innovation and enhance the degree of innovation. Open innovation is motivated by the idea that open communication creates better products and innovates faster than closed communication. Tech giant IBM, for example, has set up a "joint lab" that combines ten university labs and corporate labs, with participants from Switzerland to Saudi Arabia, including online music services like Last. FM business. The joint laboratory also held a special daylight gathering - "Hack Days". At this gathering, researchers enjoy free food and drinks together and discuss and develop application services together. Balancing the relationship between open and closed innovation depends on three key factors. Fierce competition. In highly competitive industries, collaborators are prone to speculate and steal the opponent's superior technology. In the case of fierce competition, closed innovation is more suitable for market competition. One-time innovation. When innovative behavior brings about major technological changes, opportunistic behavior can keep the winners ahead of the competition in the market, and the losers will always fall behind. When the innovation behavior is continuous, open innovation can be carried out better, and it can also promote the continuous stability of the situation of mutual benefit and reciprocity. Closely linked innovations. When the technology itself is very complex and internally interconnected, the existence of open innovation will bring irrelevant disruptive elements, and such elements will have a knock-on effect on the entire product line.

Question: After reading the opinion above, what is your response? What may be some risks or drawbacks? Please be detailed in your opinion.